How can you learn from change orders?

2 Why are change orders important?

Change orders are important because they reflect the dynamic and complex nature of construction projects. They can have positive or negative impacts on the project performance and the relationship between the parties involved. Change orders can also reveal the strengths and weaknesses of the construction management processes, such as planning, communication, coordination, control, and documentation. By tracking and evaluating change orders, you can gain insights into how to improve your project management skills and avoid or minimize future changes.

3 How to track change orders?

Tracking change orders is essential for effective construction management, requiring a clear and consistent system for recording, reviewing, approving, and implementing change orders. Communication of these changes to all relevant stakeholders and updating the project documents is also necessary. To do this, you can use a change order log (a spreadsheet or database that records the details of each change order), a change order form (a standard document outlining the scope, specifications, price, and time of each change order), a change order register (a summary report showing the cumulative effect of change orders on the project budget and schedule), or a change order dashboard (a visual representation of the data showing trends, patterns, and performance).

4 How to analyze change orders?

Analyzing change orders is essential for learning from them and improving your construction management processes. To do this, you must examine the data and information collected from tracking change orders and identify the root causes, impacts, and outcomes of each one. Additionally, you should compare the change order performance to the project objectives and expectations, and evaluate the effectiveness and efficiency of the change order management process. To analyze change orders, you can use techniques such as cause and effect analysis (e.g. fishbone or Ishikawa diagrams to trace sources and consequences of each change order), impact analysis (measuring effects of each change order on project scope, cost, schedule, quality, and risk), and outcome analysis (assessing results and benefits of each change order on project performance and customer satisfaction).

5 How to learn from change orders?

Learning from change orders is the ultimate goal of change order management. You need to use the findings and insights from analyzing change orders and apply them to your current and future projects, as well as share the lessons learned with your team and other stakeholders. To ensure that you are learning from change orders, you should create an action plan, which will detail the corrective or preventive actions to be taken to address the issues or opportunities identified. Additionally, you should establish a feedback loop, allowing project participants, such as the owner, contractor, designer, and subcontractors to provide their input on the change order performance and management. Finally, you should implement a continuous improvement process that involves monitoring and reviewing the change order management process and making adjustments based on the lessons learned.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?